Global Economy

Tyler Durden's picture

The Greek Debt Strategy Is Crazy, But Shrewd





With everyone making nice - apart from Dijsselbloem - ahead of the weekend, we thought some reality checks were in order... This whole Greek debt “face-off” with the rest of Europe is so comical. First of all, as previously mentioned, there is NO way that Greece will EVER pay off all of its debt. And its ability to even service [interest payments] its debt is questionable. So, really, if you are a creditor to Greece what are you to do? You are definitely going to get “stiffed”. The question = Can you recover even some of your principal? In this case probably not a lot.

 
Tyler Durden's picture

Caption Contest: The Moment Janet Yellen Figured it All Out…





As the WSJ noted, the "world’s top finance leaders on Tuesday in effect backed currency depreciation as a tool for promoting growth by signaling strong support for aggressive easy-money policies aimed at boosting the fragile global economy." Spot the person who just realized it's not going to work.

 
Tyler Durden's picture

Elizabeth Warren Opposes "Congressional Meddling" 'Audit The Fed' Bill





It would appear the powers that be are getting nervous. Yesterday, Fed Governor Jerome Powell (and Fisher and Plosser) stepped up the central bank’s push against what he termed congressional efforts to extend political influence over monetary policy, calling them "misguided" and "in violent conflict with the facts." Today we have Senator Elizabeth Warren trying to sound supportive of transparency but proclaiming that she opposes Rand Paul's "Audit The Fed" Bill because it promotes "congressional meddling in the Fed’s monetary policy decisions," and has "dangerous implications for financial stability and the health of the global economy."

 
Tyler Durden's picture

If You Listen Carefully, The Bankers Are Actually Telling Us What Is Going To Happen Next





Are we on the verge of a major worldwide economic downturn? Well, if recent warnings from prominent bankers all over the world are to be believed, that may be precisely what we are facing in the months ahead.

 
Pivotfarm's picture

Greece is Playing to Lose





The future of Europe now depends on something apparently impossible: Greece and Germany must strike a deal.

 
Tyler Durden's picture

"Controlling Today's Perception Of Tomorrow's Economic Strength" Is THE Fed Mandate





Controlling (stabilizing) today’s perception of tomorrow’s economic strength attached to (and thus backing) the USD is the Fed mandate. For if we lose control of today’s false perception well then god only knows what tomorrow’s given value may be. This is the absolute ‘mandate’ of central banking.

 
Tyler Durden's picture

Why Citi Thinks Oil Is Going To $20





The recent rally in crude prices looks more like a head-fake than a sustainable turning point, suggests Citi's Ed Morse, noting that short-term market factors are more bearish, pointing to more price pressure for the next couple of months and beyond. While the shape of the oil price recovery is unlikely to be 'L'-shaped in their view (more likely 'U', 'V', or 'W'-shaped recovery), Citi warns the oil market should bottom sometime between the end of Q1 and beginning of Q2 at a significantly lower price level in the $40 range (perhaps as low as the $20 range for a while) - after which markets should start to balance, first with an end to inventory builds and later on with a period of sustained inventory draws.

 
Phoenix Capital Research's picture

What's Coming Will Be Much Much Worse Than 2008





Today the financial system is even more leveraged than in 2007… backstopped by even less high quality collateral. And this time around, most industrialized sovereign nations themselves are bankrupt, meaning that when the bond bubble pops, the selling panic and liquidations will be even more extreme.

 
Tyler Durden's picture

Alan Greenspan: "Greece Will Leave The Eurozone" And "There Is No Way That I Can Conceive Of The Euro Continuing"





"Greece will leave the Eurozone. I don't see that it helps Greece to be in the Euro, and I certainly don't see that it helps the rest of the Eurozone. It's just a matter of time before everyone recognizes that parting is the best strategy.... The problem is that there there is no way that I can conceive of the euro of continuing."

 
Tyler Durden's picture

Greece Gambles On "Catastrophic Armageddon" For Europe, Warns It "Only Has Weeks Of Cash Left"





One of the bigger problems facing the new, upstart Greek government, which has set before itself the lofty goal of overturning 6 years of oppressive European policies and countless generations of Greek cronyism, corruption and tax-evasion is not so much the concern about deposit outflows and bank runs - even though it most certainly will be in the next few days unless the Tsipras government finds some resolution to the dramatic standoff with Merkel and the ECB - but something far more trivial: running out of money.

 
Tyler Durden's picture

Chinese Imports Crash & Worst January Export Plunge Since 2009 Sends Trade Surplus To Record High





Chinese imports collapsed 19.9% YoY in January, missing expectations of a modest 3.2% drop by the most since Lehman. This is the biggest YoY drop since May 2009 and worst January since the peak of the financial crisis. Exports tumbled 3.3% YoY (missing expectations of 5.9% surge) for the worst January since 2009. Combined this led to a $60.03 billion trade surplus in January - the largest ever. But apart from these massive imbalances, everything is awesome in the global economy (oh apart from The Baltic Dry at record lows, Iron Ore near record lows, oil prices crashed, and the other engine of the world economy - USA USA USA - imploding).

 
Tyler Durden's picture

Global Economy Will Shrink By $2.3 Trillion In 2015





The world is going to be about $2.37 trillion smaller in 2015 than most expected at the start of the year as a consequence of the USD strengthening. This is not insignificant, as it represents 3.2% of last year’s estimated global GDP. For perspective, that would be as if an economy of the size between Brazil’s and the UK’s would have just disappeared.

 
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